FACTORS FACILITATING TECHNOLOGICAL INNOVATION

1
FACTORS FACILITATING TECHNOLOGICAL INNOVATION

• LONG TIME HORIZON
• MULTIPLE COMPETING APPROACHES
• HIGH LEVEL OF USER INTERACTION IN DEVELOPMENT
• MATRIX ONLY WHEN NECESSITATED
• SMALLER DIVISIONS/SMALLER UNITS
• SUPPORT RISK TAKING
• FIRM OPERATING LIKE A VENTURE CAPITALIST
• VARIETY OF FUNDING CHANNELS
• SUPPORT PRODUCT CHAMPIONS (INTERNAL
  ENTREPRENEURS)
• HANDS ON TOP MANAGEMENT
• FLEXIBILITY AND FLUIDITY
• REWARD SYSTEMS WHICH SUPPORT INNOVATION
• AUTONOMY/DECENTRALIZATION
• COMMUNICATION OUTSIDE FORMAL CHANNELS
• BUSINESS FOCUS

2
Individual
Small Group
Large Group
High Risk
Medium Risk
Low Risk
Low Failure
High Failure
Initial Appl. of Technology
Modification of Technology
Product to the Customer
Creation of New Technology
No Management Involvement
High Management Involvement
No Schedule
Accurate Schedule
No Discipline
High Discipline
Chaos
Order
Figure 2. Risk declines and structure increases
as a new technology moves across the development
continuum, from individual, to small-group to
large-group function.
3
NEW PRODUCT DEVELOPMENT PROCESS

• EXPLORATORY
• CONCEPT DEVELOPMENT
• PROTOTYPE DEVELOPMENT
• PROTOTYPE TESTING
• MARKET DEVELOPMENT
• MANUFACTURING START-UP
• MARKETING START-UP
• TECHNICAL SERVICE

4
FACTORS INFLUENCING NPD PERFORMANCE AT THE
BUSINESS UNIT LEVEL

• A QUALITY NPD PROCESS
• A DEFINED NEW PRODUCT STRATEGY FOR THE BUSINESS
  UNIT
• ADEQUATE RESOURCES
• RD SPENDING ( OF SALES)
• QUALITY NPD PROJECT TEAMS
• SENIOR MGMT COMMITMENT
• INNOVATIVE CULTURE
• EFFECTIVE CROSS-FUNCTIONAL TEAMS
• SENIOR MGMT ACCOUNTABILITY FOR NPD RESULTS

5
Percentage of businesses that have each element
of a positive climate for innovation
6
Percentage of businesses with specific actions
and programs to promote climate for innovation.
7
Percentage of businesses where senior management
demonstrates commitment to NPD.
8
How NPD project teams are organized
9
Characteristics of cross-functional teams
10
(No Transcript)
11
DoD Milestones

• Milestone A Initial Capabilities Document
• Milestone B Capabilty Development Document
  Acquisition Program Baseline
• Milestone C Low Rate Initial Production

12
COMMON PROBLEMS IN DEFENSE SYSTEMS DEVELOPMENT

• Overzealous Advocacy
• Immature Technology
• Lack of Govt-Corporate Technology Planning
• Requirements Instability
• Ineffective Acquisition Strategy
• Unrealistic Program Baseline
• Inadequate Systems Engineering
• Inexperienced Workforce High Turnover

13
NO CAPABILITY
Single Step
Technology Base
Requirements
Capability
FOC
IOC
Capability
Time
Technology Base
Evolutionary
Requirements
Capability
Capability
Time
Single Step Versus Evolutionary
Approaches
14
PRODUCT DEVELOPMENT CYCLE TIME

• IMPORTANT IN DYNAMIC MARKET ENVIRONMENTS
• SETTING SCHEDULE MILESTONE OBJECTIVES
• FINANCIAL INCENTIVES LINKED TO SCHEDULE
  PERFORMANCE
• ORGANIZATIONAL CULTURE WHICH EMPHASIZES SPEED TO
  MARKET
• USE OF CROSS FUNCTIONAL DEVELOPMENT TEAMS
• SYSTEMATIZE ORGANIZATIONAL LEARNING
• DECENTRALIZED DECISION MAKING
• STREAMLINE PROJECT APPROVAL PROCESSES
• OUTSOURCING (STRATEGIC PARTNERSHIPS) SOME
  DEVELOPMENT ACTIVITIES WHEN OPTIMAL
• PROJECT MANAGER WITH EFFECTIVE MANAGEMENT SKILLS
• EARLY CLARITY OF PRODUCT CONCEPT
• TOP MANAGEMENT SUPPORT FOR A PROJECT
• STAFFING WITH APPROPRIATE TECHNICAL
  EXPERTISE/EXPERIENCE
• DEVELOP PRODUCT PLATFORMS (INCREMENTAL VARIATIONS
  FOLLOW)
• THE PRESENCE OF A PRODUCT CHAMPION
• CONCURRENT ENGINEERING
• RD/MARKETING INTEGRATION
• RD/MANUFACTURING INTEGRATION
• RD/SUPPLIER INTEGRATION

15

• IMPLEMENT PROGRAM WITH THE FOLLOWING
  CHARACTERISTICS
• REQUIREMENTS SET THROUGH DIALOGUE
• USE OF MATURE TECHNOLOGIES
• OPEN ARCHITECTURE
• USE OF COTS
• PRIME CONTRACTOR FULLY RESPONSIBLE FOR
  INTEGRATION
• PRIME CONTRACTOR WITH CONTINUITY IN BASE OF
  EXPERTISE

THREAT EVOLVING RAPIDLY
SCHEDULE PERFORMANCE
SCHEDULE CRITICALITY
TECHNOLOGIES EVOLVING RAPIDLY

• NECESSARY CONDITIONS FOR RADICAL REDUCTION IN
  CYCLE TIME
• TECHNOLOGICAL MATURITY
• POTENTIAL FOR COTS
• SMALL PRODUCTION QUANTITIES
• HIGH LEVEL/PERVASIVE SUPPORT

A CAUSAL MODEL OF DETERMINANTS FOR THE
IMPLEMENTATION OF A PROGRAM WITH A RADICAL
REDUCTION IN CYCLE TIME
16
FUNCTIONAL STRUCTURE
ADVANTAGES/STRENGTHS

• ECONOMIES OF SCALE WITHIN FUNCTIONS
• IN DEPTH SKILL DEVELOPMENT
• BEST IN SMALL-MEDIUM SIZED FIRMS
• BEST WITH LIMITED PRODUCT/PROJECT DIVERSITY
• REDUCES DUPLICATION OF RESOURCES

POTENTIAL PROBLEMS/WEAKNESSES

• SLOW RESPONSE TIME TO ENVIRONMENTAL CHANGES
• CENTRALIZATION OF INFORMATION AND DECISION MAKING
  RESULT IN HIERARCHICAL OVERLOAD
• POOR INTER-UNIT COORDINATION
• LESS INNOVATION WHEN CROSS-FUNCTIONAL INTEGRATION
  REQUIRED
• RESTRICTED VIEW OF ORGANIZATIONAL GOALS

17
PRODUCT/PROJECT STRUCTURE
ADVANTAGES/STRENGTHS

• RESPONSIVE TO ENVIRONMENTAL CHANGES
• PRODUCT/PROJECT ACCOUNTABILITY CLEAR POINTS OF
  CONTACT FOR CLIENTS
• STRONG INTERNAL COORDINATION ACROSS FUNCTIONS
• BEST IN LARGE ORGANIZATIONS
• BEST WHEN DIVERSE PRODUCTS/PROJECTS

POTENTIAL PROBLEMS/WEAKNESSES

• LOSS OF ECONOMIES OF SCALE IN FUNCTIONAL DEPTS.
• POOR COORDINATION ACROSS PRODUCT LINES
• LESS TECHNICAL SPECIALIZATION
• COST INCREASES

18
NEW VENTURE UNITS
POTENTIAL ADVANTAGES

• FOCUSED ATTENTION
• ENTREPRENEURIAL ENVIRONMENT
• BALANCE OF RISK REWARDS
• DECENTRALIZED DECISION MAKING

POTENTIAL PROBLEMS

• NVU MAY CREATE CONFLICT WITH RELATED DIVISION
• PERCEPTIONS OF INEQUITY MAY AFFECT MORALE
• NVU MANAGER SHOULD NOT BE ASSIGNED
• NVU SHOULD NOT BE MANAGED AS A MATURE SBU
• MERGE THE NVU WITH AN OPERATING DIVISION LATER IN
  THE PRODUCT LIFE CYCLE

19
TERRITORIAL ORGANIZATION
ADVANTAGES/STRENGTHS

• MANAGERS DEVELOP EXPERTISE IN SOLVING PROBLEMS
  PARTICULAR TO ONE LOCATION
• MANAGERS KNOW CLIENTS/CUSTOMERS PROBLEMS
• SUITED TO MULTINATIONAL FIRMS

POTENTIAL PROBLEMS/WEAKNESSES

• FUNCTIONS ARE DUPLICATED AT EACH LOCATION
• POTENTIAL CONFLICT BETWEEN LOCAL OBJECTIVES AND
  CORPORATE
• DOES NOT FOSTER EMPLOYEE KNOWLEDGE OF PROBLEMS AT
  OTHER LOCATIONS

20
MATRIX STRUCTURE
ADVANTAGES/STRENGTHS

• HIGH LEVELS OF INTEGRATION ACHIEVED WHEN REQUIRED
• FLEXIBLE USE OF HUMAN RESOURCES ACROSS PROJECTS
• SUITED FOR A DYNAMIC ENVIRONMENT
• BEST IN MEDIUM SIZED ORGANIZATIONS WITH MULTIPLE
  PRODUCTS/PROJECTS
• REDUCES DUPLICATION IN PRODUCT/PROJECT OFFICES

POTENTIAL PROBLEMS/WEAKNESSES

• TWO BOSSES - POTENTIAL CONFLICT
• ADDITIONAL ADMINISTRATIVE COST
• MANAGERS MUST HAVE STRONG INTERPERSONAL SKILLS
• WITH LARGE SIZE MAY BECOME PROBLEMATIC
• ACCOUNTABILITY IS DIFFUSED
• PERFORMANCE EVALUATION IS COMPLICATED

21
TABLE 24
FIVE STRUCTURAL TYPES
STRUCTURE
DESCRIPTION
I. FUNCTIONAL
THE PROJECT IS DIVIDED INTO SEGMENTS AND ASSIGNED
TO RELEVANT FUNCTIONAL AREAS AND/OR GROUPS WITHIN
FUNCTIONAL AREAS. THE PROJECT IS COORDINATED BY
FUNCTIONAL AND UPPER LEVELS OF MANAGEMENT. A
PROJECT MANAGER WITH LIMITED AUTHORITY IS
DESIGNATED TO COORDINATE THE PROJECT ACROSS
DIFFERENT FUNCTIONAL AREAS AND/OR GROUPS. THE
FUNCTIONAL MANAGERS RETAIN RESPONSIBILITY AND
AUTHORITY FOR THEIR SPECIFIC SEGMENTS OF THE
PROJECT. A PROJECT MANAGER IS ASSIGNED TO
OVERSEE THE PROJECT AND SHARES THE RESPONSIBILITY
AND AUTHORITY FOR COMPLETING THE PROJECT WITH THE
FUNCTIONAL MANAGERS. PROJECT AND FUNCTIONAL
MANAGERS JOINTLY DIRECT MANY WORKFLOW SEGMENTS
AND JOINTLY APPROVE MANY DECISIONS. A PROJECT
MANAGER IS ASSIGNED TO OVERSEE THE PROJECT AND
HAS PRIMARY RESPONSIBILITY AND AUTHORITY FOR
COMPLETING THE PROJECT. FUNCTIONAL MANAGERS
ASSIGN PERSONNEL AS NEEDED AND PROVIDE TECHNICAL
EXPERTISE. A PROJECT MANAGER IS PUT IN CHARGE OF
A PROJECT TEAM COMPOSED OF A CORE GROUP OF
PERSONNEL FROM SEVERAL FUNCTIONAL AREAS AND/OR
GROUPS, ASSIGNED ON A FULL-TIME BASIS. THE
FUNCTIONAL MANAGERS HAVE NO FORMAL INVOLVEMENT.
II. FUNCTIONAL MATRIX
III. BALANCED MATRIX
IV. PROJECT MATRIX
V. PROJECT
Source Gobell, D. and Larson, E. Relative
Effectiveness of Different Project Structures,
Project Management Journal, 18(2), 1987, 81-85.
22
INTERFACE BETWEEN CENTRAL RD AND BUSINESS UNITS

• MINIMAL IN-HOUSE RESEARCH (TREND)
• IDENTIFICATION OF TECHNOLOGIES COORDINATION OF
  INTRODUCTION TO BUSINESS UNITS
• GREATER PROJECT FUNDING AUTHORITY IN THE BUSINESS
  UNITS
• ONLY OUTSOURCE IF CENTRAL RD LACKS CAPABILITY
• CENTRAL RD ALIGNMENT WITH SBU STRATEGIC GOALS

23
EXTERNAL PARTNERSHIP MODEL
CRD
GOVERNMENT LABS
BU 1
BU 2
RD COORDINATION GROUP
UNIVERSITY RESEARCH
BU 3
CORPORATE RD PARTNERSHIPS
BU 4
IN THE EXTERNAL PARTNERSHIP MODEL CENTRAL RD
PERFORMS MINIMAL RESEARCH ACTIVITY IN-HOUSE. ITS
PRIMARY ROLE IS TO IDENTIFY MANY DIFFERENT,
EXTERNAL TECHNOLOGIES AND COORDINATE THE
INTRODUCTION OF THOSE TECHNOLOGIES TO THE SBUs.
24
RELATIONSHIP (LIAISON) MANAGER MODEL
CRD
RELATIONSHIP MANAGERS
FUNCTIONAL GROUPS
IN THE RELATIONSHIP MANAGER MODEL, EACH CRD-BU
INTERFACE IS MANAGED BY ONE PERSON WHO
COORDINATES THE SPECIFIC SBU AND THE VARIOIUS CRD
FUNCTIONS THAT MIGHT INTERACT WITH THIS SBU.
25
INDIVIDUAL INITIATIVE (NETWORK) MODEL
CRD
FIRMS PROMOTE INDIVIDUAL NETWORKING TO BUILD
INTERACTIONS BETWEEN CRD AND SBUs IN THE
INDIVIDUAL INITIATIVE MODEL
26
THREE MODELS OF CENTRAL RD SBU INTERFACE

• EXTERNAL PARTNERSHIP MODEL
• INTELLECTUAL CAPITAL/CAPABILITY AVAILABLE
  EXTERNALLY
• IC CAN BE PROTECTED ONCE BROUGHT IN-HOUSE
• UNCERTAINTY OF TECHNICAL DEVELOPMENT IS HIGH
• ABSORPTIVE CAPACITY OF ORGANIZATION IS SUFFICIENT
  FOR THE TECHNOLOGY
• RELATIONSHIP (LIAISON) MANAGER MODEL
• SBU NEEDS TO INTERFACE WITH MULTIPLE CRD GROUPS
• CRD IS TECHNICALLY STRONG DIVERSE
• LIAISON MGR IS GIVEN SUFFICIENT AUTHORITY BY CRD
• INDIVIDUAL INITIATIVE (NETWORK) MODEL
• STRONG CULTURE OF SBU-CRD INTERACTION
• CRD LEADERSHIP DRIVING SBU INTERACTION
• INCENTIVES PERFORMANCE REVIEWS ENCOURAGE
  INTERACTION
• PROJECTS CONDUCIVE TO SMALL CRD TEAMS

27
CROSS FUNCTIONAL INTEGRATION
HIGH
MATRIX STRUCTURE
PROJECT MGR. W/PERM X-FUNCT. TEAMS
PERMANENT X-FUNCTIONAL TEAMS
TEMP. TASK FORCE
DEGREE OF INTEGRATION REQUIRED
LIAISON ROLES
DIRECT CONTACT
FORMALIZED PROCEDURES
LOW
HIERARCHY
LOW
HIGH
INFORMATION CAPACITY OF MODE COORDINATION
28
CONCURRENT VS SEQUENTIAL PROJECTS

• Concurrent Sequential
• Process Extensive Overlap Minimal Overlap
• Structure Multifunctional Teams Functional
  Teams
• Technology Extensive Minimal
• Communic. Frequent Two-way Infrequent
  One-way
• Cycle Time Rapid Slower
• Chg. Ord. Lower Number Greater Number
• Performance Higher Lower

29
Other Organizations
Contractor team gets corporate approval to seek
change
Proposal referred to DOD Contracting
Representative
Program office seeks information from engineering
and cost experts and consults with users
Change referred to DOD Contracting Representative
Change sent to corporate headquarters
Within DOD Program Office
Program office gets approval to make change
Program office assesses proposal
Within Contractor Program Office
Contractor identifies trade-off
Team implements change
Design to original requirement?
Change requirement to ease design?
Month 2
Month 3
Month 1
Month 4
Month 5
Month 6
Figure 3. Illustration of a Sequential Decision
Process (Adapted from GAO-01-510, Figure 8)
30
CONCURRENT ENGINEERING FACTORS INFLUENCING
PERFORMANCE

• Early involvement and increased planning horizon
• Risks identified and tradeoffs made earlier
• Specifications mostly correct because all
  functions present
• Continuous involvement of operations delivered
  prototypes on time
• Testing assisted in finding design problems early
• Production issues resolved early

31
BARRIERS TO CONCURRENT ENGINEERING

• Lack of business unit and top management support
• Requirements difficult to set at concept stage
• Lack of control of project resources
• Lack of interaction between functional groups
• Lack of involvement by Marketing at project start
• Concurrent engineering not well understood

32
OVERCOMING BARRIERS TO CONCURRENT ENGINEERING

• Create multifunctional teams at project outset
• Define member responsibilities clearly
• Dedicate necessary resources
• Improve NPD process
• Define requirements early
• Improve communication between functional groups
• Training use of IT tools
• Increase use of simulation tools

33
BROADENING BACKGROUNDS OF RD AND MARKETING
PERSONNEL

• RD PERSONNEL
• SEND ENGG. OUT WITH MKT. TO VISIT CUSTOMERS
• SEND BOTH ENGG. AND MKT. TO TRADE SHOWS
• BRING CUSTOMERS IN TO VISIT RD ORGANIZATION
• HIRE ENGG. PREVIOUSLY EMPLOYED BY CUSTOMER
• MARKETING TRAINING FOR ENGG.
• CON. ED. TRAINING IN MARKETING
• MBA TUITION REIMBURSEMENT

• MARKETING PERSONNEL
• TRAINING IN CAPABILITIES LIMITATIONS OF
  TECHNOLOGIES PRODUCTS
• MEETINGS WITH RD
• HIRE ENGG. WHO SHOW POTENTIAL TO MOVE INTO MKT.
• EDUCATION PROBLEMATIC DUE TO PREREQUISITES

34
REDUCING POTENTIAL FOR CONFLICT BETWEEN RD AND
MKT.

• BROADENING BACKGROUNDS REDUCES DIFFERENCE IN
  FRAMES OF REFERENCE
• INTERGROUP CONFRONTATION MEETINGS
• SURVEY-FEEDBACK TO IDENTIFY SOURCES
• TEAM BUILDING (IF X-FUNCTIONAL TEAMS)
• INVOLVE BOTH RD AND MKT. FROM EARLIEST STAGES
• JOINT FIELD CALLS
• JOINT DEVELOPMENT OF PROMOTIONAL MATERIALS
• REWARD TOP MGRS. FOR SUCCESSFUL COLLABORATION
• TRAINING IN CONFLICT RESOLUTION FOR SELECTED
  MGRS.

35
ORGANIZATIONAL LEARNING

• 1. SYSTEMATIC RECORDING OF INFORMATION FROM PAST
  PROJECTS
• 2. EFFECTIVELY ORGANIZED RETRIEVAL SYSTEMS
• 3. REVIEW OF PERTINENT INFORMATION FROM PAST
  PROJECTS

36
PRODUCT CHAMPIONS
SCHONS OBSERVATIONS 1. AT THE OUTSET, THE NEW
IDEA ENCOUNTERS SHARP RESISTANCE. 2. OVERCOMING
THIS RESISTANCE REQUIRES VIGOROUS
PROMOTION. 3. PROPONENTS OF THE IDEA WORK
PRIMARILY THROUGH THE INFORMAL RATHER THAN
THROUGH THE FORMAL SYSTEM. 4. TYPICALLY ONE
PERSON EMERGES AS CHAMPION OF THE IDEA.
37
BEHAVIOR OF PRODUCT CHAMPIONS

• QUESTIONS DATA AGGRESSIVELY TO IDENTIFY PROBLEMS
  OR OPPORTUNITIES
• TEACHES SELF NEW SKILLS
• DIRECTS OWN ACTIONS FOR RESULTS
• BALANCES AND ALIGNS STRONG PERSONAL BELIEFS WITH
  THE ORGANIZATIONS VALUES

38
DECENTRALIZATION
ADVANTAGES 1. FACILITATES MANAGEMENT
DEVELOPMENT 2. FACILITATES EVALUATION FOR
PROMOTION 3. GREATER CREATIVITY AND
INNOVATION 4. INCREASES HIGHER ORDER NEED
FULFILLMENT INCREASES POTENTIAL MOTIVATION
5. IMPLEMENTATION OF DECISIONS
FACILITATED 6. FREES UPPER MANAGEMENT FOR MORE
IMPORTANT TASKS

• DISADVANTAGES/POTENTIAL PROBLEMS
• 1. COST OF TRAINING
• 2. MANY MANAGERS FIND IT DIFFICULT
• 3. UPPER LEVELS LOSE CONSIDERABLE CONTROL
• 4. SOMETIMES LOW COOPERATION
• 5. GREATER CONSUMPTION OF TIME INITIALLY

39
SELF ACTUALIZATION ESTEEM LOVE
BELONGING SECURITY PHYSIOLOGICAL
MASLOWS NEED HIERARCHY
40
HERZBERG
DISSATISFIERS DISSATISFY IF NOT PRESENT BUT DO
NOT MOTIVATE 1. SALARY 2. JOB SECURITY 3. WORKING
CONDITIONS 4. STATUS 5. COMPANY PROCEDURES/
POLICIES 6. QUALITY OF TECH. SUPERVISION 7. QUALIT
Y OF INTERPERSONAL RELATIONS 8. RELATIONSHIP WITH
SUPERVISOR
MOTIVATORS MOTIVATE IF PRESENT BUT DONT
DISSATISFY IF NOT 1. ACHIEVEMENT 2. RECOGNITION 3
. RESPONSIBILITY 4. ADVANCEMENT 5. THE WORK
ITSELF (INTRINSIC) 6. POSSIBILITY FOR GROWTH
41
ACHIEVEMENT
RECOGNITION
ADVANCEMENT
RESPONSIBILITY
COMPANY POLICIES
SUPERVISION-QUAL.
RELATIONS - SUPERVISORS
WORKING CONDITIONS
40
30
20
0
10
10
20
30
40
FREQUENCY DISSATISFIER
FREQUENCY MOTIVATOR
42
MEAN LEVELS OF DISSATISFACTION OF NEEDS
SELF- ACTUALIZATION
LEVEL PRESIDENT VICE-PRESIDENT UPPER-MIDDLE LO
WER-MIDDLE LOWER
.26 .45 .41 .38 .82
.34 .29 .33 .32 .56
.28 .45 .66 .71 1.15
.18 .55 .87 .96 1.40
.63 .90 1.12 1.17 1.52
SECURITY
SOCIAL
ESTEEM
AUTONOMY
43
CHARACTERISTICS OF INDIVIDUALS WITH HIGHNEEDS
FOR ACHIEVEMENT

• LIKE TO TAKE RESPONSIBILITY FOR SOLVING PROBLEMS
• TEND TO SET MODERATE BUT CHALLENGING GOALS
• TEND TO TAKE CALCULATED RISKS
• DESIRE CONCRETE PERIODIC FEEDBACK

44
GROWTH
SELF- ACTUALIZATION
ACHIEVEMENT
HIGHER ORDER NEEDS
WORK (intrinsic factors)
ACHIEVEMENT
RESPONSIBILITY
MOTIVATORS
ESTEEM
POWER
OPPORTUNITY FOR GROWTH
ADVANCEMENT RECOGNITION
LOVE BELONGING
RELATIONSHP
AFFILIATION
INTERPERSONAL RELATIONS
SECURITY
EXISTENCE
BIOLOGICAL NEEDS
COMPANY POLICIES JOB SECURITY
MAINTENANCE FACTORS
PHYSIOLOGICAL
WORKING CONDITIONS
MASLOW
ALDERFER
McCLELLAND
HERZBERG
45
EXPECTANCY THEORY
INSTRUMENTALITY
OUTCOME D
(E- P EXPECTANCY)
(P -O EXPECTANCY)
OUTCOME A
OUTCOME E
EFFORT
PERFORMANCE
OUTCOME B
OUTCOME C
2nd LEVEL OUTCOMES
1st LEVEL OUTCOMES
46
EXPECTANCY MODEL
n
M E1 S E2 Vi
i1
where Vi S IJ VJ
m
j 1
and,
E1 Effort-Perf Expectancy E2 Perf-Outcome
Expectancy
47
EQUITY THEORY
INPUTS EFFORT, EDUCATION, EXPERIENCE,

SENIORITY, ETC.
OUTCOMES SALARY, BENEFITS, ETC.
EQUITY PERCEIVED EQUIVALENT OUTCOME/INPUT RA
TIO WITH REFERENTS
Op
Or
Ip
Ir
INEQUITY
Op
Or
Ip
Ir
UNDER REWARD
TENSION
OVER REWARD
48
POTENTIAL OUTCOMES ASSOCIATEDWITH UNDER REWARD

• DECREASED EFFORT
• ATTEMPT TO INCREASE OUTCOMES
• COGNITIVE DISTORTION OF I O
• QUIT, TRANSFER, ABSENTEEISM
• ALTER REFERENTS INPUT
• IGNORE THE SITUATION

POTENTIAL OUTCOMES ASSOCIATEDWITH OVER REWARD

• INCREASED EFFORT
• COGNITIVE DISTORTION OF I O
• ALTER REFERENTS INPUT
• IGNORE THE SITUATION

49
REINFORCEMENT - GENERAL PRINCIPLES

• NOT ALL REWARDS ARE REINFORCERS
• LAW OF CONTINGENT REINFORCEMENT
• LAW OF IMMEDIATE REINFORCEMENT
• LAW OF REINFORCEMENT SIZE
• LAW OF REINFORCEMENT DEPRIVATION
• SHAPING
• EXTINCTION

50
FOUR TYPES OF REINFORCEMENT
CONSEQUENCE IS PRESENTED
CONSEQUENCE IS WITHDRAWN
POSITIVE REINFORCEMENT
PUNISHMENT BY REMOVAL
POSITIVE CONSEQUENCE
PUNISHMENT BY APPLICATION
NEGATIVE REINFORCEMENT
NEGATIVE CONSEQUENCE
51
DISCIPLINARY ACTION
1. PRAISE IN PUBLIC, PUNISH IN PRIVATE 2. BE
INSTRUCTIVE 3. PUNISHMENT SHOULD BE
IMMEDIATE 4. BE SPECIFIC ABOUT WHAT NEEDS TO BE
CHANGED 5. PUNISH THE BEHAVIOR AND NOT THE
PERSON 6. BE CONSISTENT 7. PROGRESSION OF
PENALTIES
52
DISCIPLINARY ACTION PROGRESSION OF PENALTIES

• VERBAL WARNING
• VERBAL WARNING NOTED IN EMPLOYMENT RECORD
• WRITTEN WARNING NOTED IN EMPLOYMENT RECORD
• SUSPENSION
• DISCHARGE

53
FINANCIAL INCENTIVES - SUPPLEMENTS TO SALARY

• MERIT PAY INCREASES
• BONUSES
• PERFORMANCE SHARES
• DEFERRED COMPENSATION
• PERQUISITES
• GAIN SHARING
• PROFIT SHARING
• PIECEWORK
• COMMISSIONS

54
TRENDS IN COMPENSATION

• BROAD-BANDING
• COMPETENCY BASED PAY
• EMPHASIS ON MARKET ALIGNMENT
• EXPANDED ROLE OF INCENTIVES
• EMPHASIS ON RECOGNITION REWARD PRACTICES

55
MANAGING TOTAL REWARDS

• PAY
• BENEFITS
• TRAINING DEVELOPMENT
• WORK ENVIRONMENT

56
FIGURE 1
MODEL FOR THE MEASUREMENT OF HUMAN RESOURCE
REPLACEMENT COSTS
RECRUITMENT
SELECTION
DIRECT COSTS
HIRING
ACQUISITION COSTS
PLACEMENT
INDIRECT COSTS
COST OF PROMOTION OR TRANSFER FROM WITHIN
FORMAL TRAINING AND ORIENTATION
DIRECT COSTS
POSITIONAL REPLACEMENT COST
ON-THE-JOB TRAINING
LEARNING COSTS
INDIRECT COSTS
COST OF TRAINERS TIME
SEPARATION PAY
DIRECT COSTS
SEPARATION COSTS
LOSS OF EFFICIENCY PRIOR TO SEPARATION
INDIRECT COSTS
COST OF VACANT POSITION DURING SEARCH
Source Flamholtz, E.G. Human Resource
Accounting (Encino, CA Dickenson, 1974).
57
FINANCIAL FACTORS INFLUENCING TURNOVER/RETENTION

• COMPETITIVE BASE PAY
• RETIREMENT SYSTEM
• BENEFITS PACKAGE
• FINANCIAL INCENTIVES
• ESOPS

58
FACTORS IN THE WORK ENVIRONMENT AND RETENTION

• REALISM IN JOB INTERVIEWS
• PROMOTIONAL OPPORTUNITIES
• WORK ASSIGNMENTS
• AUTONOMY
• MANAGERS HUMAN RELATIONS SKILLS
• QUALITY OF TEAMWORK/MORALE
• RESOURCE ADEQUACY
• HIGHER ORDER NEED FULFILLMENT
• UNIT PERFORMANCE
• GOAL CONGRUENCE

59
EVALUATION OF EXISTING JOB
A.
a) alternative forms of withdrawal, e.g.
absenteeism, passive job behavior
EXPERIENCED JOB SATISFACTION- DISSATISFACTION
B.
THINKING OF QUITTING
C.
D.
EVALUATION OF EXPECTED UTILITY OF SEARCH AND COST
OF QUITTING
b) non-job related factors, e.g. transfer of
spouse, may stimulate intention to search
INTENTION TO SEARCH FOR ALTERNATIVES
E.
SEARCH FOR ALTERNATIVES
F.
c) unsolicited or highly visible alternatives
may stimulate evaluation d) one alternative may
be withdrawal from labor market
EVALUATION OF ALTERNATIVES
G.
COMPARISON OF ALTERNATIVES VS. PRESENT JOB
H.
I.
INTENTION TO QUIT/STAY
J.
QUIT/STAY
e) impulsive behavior
FIGURE 1. THE EMPLOYEE TURNOVER DECISION PROCESS.
60
COMMUNICATION SHANNON WEAVER MODEL
THINKING
ENCODING
TRANSMITTING
PERCEIVING
DECODING
UNDERSTANDING
61
BARRIERS TO EFFECTIVE COMMUNICATION

• MOTIVATION
• STEREOTYPING
• SOURCE CREDIBILITY
• DIFFERING FRAMES OF REFERENCE
• SELECTIVE PERCEPTION
• JUMPING TO CONCLUSIONS
• SEMANTICS
• FAILURE TO OBTAIN FEEDBACK

• JARGON
• FILTERING
• STATUS DIFFERENCES
• TIME PRESSURES
• INFORMATION OVERLOAD
• CONDENSATION
• SELF DISCLOSURE

62
JACKSONS RETURN POTENTIAL MODEL
c
X
approval 3
b
a
indifference 0
d
disapproval - 3
PRODUCTIVITY
a) INTENSITY b) RANGE OF TOLERABLE BEHAVIOR c)
POINT OF MAX RETURN d) CRYSTALIZATION
63
GROUP COHESIVENESS - OUTCOMES

• INCREASED CONFORMITY TO NORMS
• INCREASED INTERPERSONAL INFLUENCE
• INCREASED COMMITMENT TO GROUP
• INCREASED NEED FULFILLMENT
• INCREASED COOPERATION AND COMMUNICATION

64
GROUP COHESIVENESS - ANTECEDENTS

• SIZE (-)
• INTRAGROUP COMPETITION (-)
• EXTERNAL THREAT ()
• ATTITUDE SIMILARITY ()
• INSTRUMENTALITY IN FULFILLING NEEDS ()
• GROUP SUCCESS ()
• STATUS SIMILARITY ()
• STABLE MEMBERSHIP ()
• ISOLATION FROM OTHER GROUPS ()
• STATUS OF THE GROUP ()

65
STRATEGIES FOR MANAGING COHESIVE GROUPS WITH LOW
PERFORMANCE NORMS
1. SPLIT THE GROUP 2. INSTITUTE INCENTIVE
PLAN 3. PARTICIPATIVE MGMT. 4. DISCIPLINARY
ACTION 5. INTERGROUP COMPETITION 6. CHANGE
SUPERVISOR
66
DEVELOPMENT OF SUBGROUPS (FAULTLINES)

• Failure of Collaboration (Trust)
• Failure of Knowledge Sharing
• Initially Subgroups Develop Based on Surface
  Level Attributes
• In Later Stages Subgroups are Based on Deeper
  Level Values Attitudes

67
MANAGING SUBGROUP FORMATION

• Diagnose the Probability of Fault Lines Emerging
• Focus on Task Orientation when a Team is Newly
  Formed
• Switch Between Task Orientation and Relationships
  Orientation when Required
• Focus on Developing Cohesiveness Team Building

68
GROUP DECISION PROCESS

• DEFINE THE PROBLEM
• IDENTIFY THE DECISION CRITERIA
• GENERATE ALTERNATIVE SOLUTIONS
• EVALUATE SELECT ALTERNATIVE
• IMPLEMENTATION AND EVALUATION

69
ADVANTAGES OF GROUP DECISION MAKING

• POOLED EXPERTISE
• GREATER NUMBER OF APPROACHES TO PROBLEM
• GREATER ACCEPTABILITY
• GREATER COMPREHENSION
• SMOOTHER IMPLEMENTATION
• ERROR CORRECTING MECHANISM

70
POTENTIAL PROBLEMS IN GROUP DECISION MAKING

• TIME CONSUMPTION
• DOMINANT PERSONALITY
• STATUS DIFFERENCES
• INADEQUATE DISCUSSION OF ALTERNATIVES
• GOAL DISPLACEMENT
• RISKY SHIFT/GROUP POLARIZATION
• GROUP THINK

71
MAJOR TYPES OF LEADERSHIP BEHAVIOR IN DECISION
GROUPS
TASK-ORIENTED BEHAVIOR 1. INITIATING-STRUCTURE 2.
STIMULATING COMMUNICATION 3. CLARIFYING
COMMUNICATION 4. SUMMARIZING 5. CONSENSUS
TESTING GROUP-MAINTENANCE BEHAVIOR 1. GATEKEEPING
2. HARMONIZING 3. SUPPORTING 4. STANDARD
SETTING 5. PROCESS ANALYZING
SPECIFIC OBJECTIVE GUIDE AND SEQUENCE
DISCUSSION INCREASE INFORMATION EXCHANGE INCREASE
COMPREHENSION CHECK UNDERSTANDING MONITOR
PROGRESS CHECK ON AGREEMENT SPECIFIC
OBJECTIVE INCREASE AND EQUALIZE
PARTICIPATION REDUCE TENSION AND
HOSTILITY PREVENT WITHDRAWAL REGULATE
BEHAVIOR DISCOVER AND RESOLVE PROCESS PROBLEMS
72
LEADERSHIP CHARACTERISTICS

• Humility
• Energy
• Intuition
• Vision
• Perspective
• Passion
• Conviction
• Learning

73
VIGILANCE AS A LEADERSHIP CHARACTERISTIC

• External Focus Openness to New or Diverse
  Perspectives
• Strategic Foresight Probing for Second-Order
  Effects
• Enabling Exploration Creating a Culture of
  Discovery

74
Distinguishing Vigilant From Operational Leaders
75
Distinguishing Vigilant From Operational Leaders
76
INITIATING STRUCTURE

• SETS STANDARDS FOR PERFORMANCE
• EMPHASIZES MEETING DEADLINES
• EFFECTIVELY SCHEDULES WORK
• PRESSURES WEAKER PERFORMERS TO INCREASE OUTPUT
• PROVIDES NEGATIVE FEEDBACK WHEN WORK QUALITY IS
  POOR
• SEES THAT A GROUP MEMBER IS REWARDED FOR A JOB
  WELL DONE
• LETS GROUP MEMBERS KNOW WHAT IS EXPECTED OF THEM
• INSISTS THAT PEOPLE FOLLOW STANDARD OPERATING
  PROCEDURES
• EMPHASIZES THE QUALITY OF WORK
• SEES TO IT THAT GROUP MEMBERS ARE WORKING UP TO
  THEIR CAPACITY
• SEES TO IT THAT THE WORK AMONG GROUP MEMBERS IS
  EFFECTIVELY COORDINATED
• GIVES ADVANCE NOTICE OF CHANGES
• GIVES SOUND TECHNICAL ADVICE

77
CONSIDERATION

• EXPRESSES APPRECIATION WHEN A GROUP MEMBER DOES A
  GOOD JOB
• GETS THE APPROVAL OF THE WORK GROUP ON IMPORTANT
  MATTERS BEFORE PROCEEDING
• IS FRIENDLY AND CAN BE EASILY APPROACHED
• SHOWS CONCERN WHEN PEOPLE HAVE PERSONAL PROBLEMS
• IS OPEN TO CHANGING HIS/HER MIND WHEN GROUP
  MEMBERS DISAGREE
• NEVER CRITICIZES PEOPLE IN THE PRESENCE OF OTHERS
• SHOWS ENCOURAGEMENT TO WEAKER PERFORMERS
• STANDS UP FOR PEOPLE IN HIS/HER GROUP EVEN THOUGH
  IT MAY BE UNPOPULAR
• NEVER CHANGES THE DUTIES OF GROUP MEMBERS WITHOUT
  FIRST DISCUSSING IT WITH THEM
• PUTS SUGGESTIONS THAT ARE MADE BY GROUP MEMBERS
  INTO OPERATION
• STRESSES THE IMPORTANCE OF HIGH MORALE IN THE
  GROUP
• DOES PERSONAL FAVORS FOR GROUP MEMBERS
• TREATS SUBORDINATES AS EQUALS
• MAKES SUBORDINATES FEEL AT EASE WHEN TALKING TO
  THEM
• DOES LITTLE THINGS TO MAKE IT PLEASANT TO BE A
  MEMBER OF THE TEAM
• FINDS TIME TO LISTEN TO SUBORDINATES
• LOOKS OUT FOR THE PERSONAL WELFARE/CAREER
  DEVELOPMENT OF INDIVIDUAL GROUP MEMBERS

78
EMOTIONAL INTELLIGENCE

• Emotional stability (control)
• Agreeable/Diplomatic
• Ability to delay gratification
• Ability to read others emotions
• Internal locus of control

79
MANAGERIAL GRID (BLAKE MOUTON)
9
COUNTRY CLUB
TEAM LEADER
RELATIONSHIP ORIENTATION
1
ABDICATE
AUTOCRATIC
9
1
TASK ORIENTATION
80
LIFE CYCLE MODEL (HERSEY BLANCHARD)
III
II
HIGH
RELATIONSHIP ORIENTATION
I
IV
?
LOW
LOW
HIGH
TASK ORIENTATION
81
AI. YOU SOLVE THE PROBLEM OR MAKE THE DECISION
YOURSELF, USING INFORMATION AVAILABLE TO YOU AT
THE TIME. AII. YOU OBTAIN THE NECESSARY
INFORMATION FROM YOUR SUBORDINATES, THEN DECIDE
THE SOLUTION TO THE PROBLEM YOURSELF. YOU MAY
OR MAY NOT TELL YOUR SUBORDINATES WHAT THE
PROBLEM IS IN GETTING THE INFORMATION FROM THEM.
THE ROLE PLAYED BY YOUR SUBORDINATES IN MAKING
THE DECISION IS CLEARLY ONE OF PROVIDING
NECESSARY INFORMATION TO YOU, RATHER THAN
GENERATING OR EVALUATING ALTERNATIVE
SOLUTIONS. CI. YOU SHARE THE PROBLEM WITH THE
RELEVANT SUBORDINATES INDIVIDUALLY, GETTING
THEIR IDEAS AND SUGGESTIONS WITHOUT BRINGING
THEM TOGETHER AS A GROUP. THEN YOU MAKE THE
DECISION, WHICH MAY OR MAY NOT REFLECT YOUR
SUBORDINATES INFLUENCE. CII. YOU SHARE THE
PROBLEM WITH YOUR SUBORDINATES AS A GROUP,
OBTAINING THEIR COLLECTIVE IDEAS AND
SUGGESTIONS. THEN YOU MAKE THE DECISION, WHICH
MAY OR MAY NOT REFLECT YOUR SUBORDINATES
INFLUENCE. GII. YOU SHARE THE PROBLEM WITH YOUR
SUBORDINATES AS A GROUP. TOGETHER YOU GENERATE
AND EVALUATE ALTERNATIVES AND ATTEMPT TO REACH
AGREEMENT (CONSENSUS) ON A SOLUTION. YOUR ROLE
IS MUCH LIKE THAT OF CHAIRMAN. YOU DO NOT TRY
TO INFLUENCE THE GROUP TO ADOPT YOUR SOLUTION,
AND YOU ARE WILLING TO ACCEPT AND IMPLEMENT ANY
SOLUTION WHICH HAS THE SUPPORT OF THE ENTIRE
GROUP.
82
QR
QUALITY REQUIREMENT How important is the
technical quality of this decision? COMMITMENT
REQUIREMENT How important is subordinate
commitment to the decision? LEADERS
INFORMATION Do you have sufficient information
to make a high-quality decision? PROBLEM
STRUCTURE Is the problem well structured? COMMITM
ENT PROBABILITY If you were to make the decision
by yourself, is it reasonably certain that your
subordinate(s) would be committed to the
decision? GOAL CONGRUENCE Do subordinates share
the organizational goals to be attained in
solving this problem? SUBORDINATE CONFLICT Is
conflict among subordinates over preferred
solutions likely? SUBORDINATE INFORMATION Do
subordinates have sufficient information to make
a high-quality decision?
CR
LI
ST
CP
GC
CO
SI
YES
AI
CP
GC
NO
YES
YES
YES
SI
GII
NO
NO
YES
CII
CP
NO
NO
NO
NO
NO
YES
LI
ST
GC
SI
NO
YES
GII
CO
YES
YES
YES
HIGH
CII
NO
GC
NO
AII
CP
NO
YES
CR
NO
YES
YES
GC
CO
CI
YES
ST
CII
NO
HIGH
LOW
NO
LI
YES
STATE THE PROBLEM
QR
LOW
AI
LOW
CR
YES
HIGH
NO
CP
GII
THE REVISED LEADER PARTICIPATION MODEL
(TIME-DRIVEN DECISION TREE-GROUP PROBLEMS)
83
TRANSFORMATIONAL/CHARISMATIC LEADERSHIP

• REVOLUTIONARY IDEAS - CHANGE STATUS QUO
• PRESENT VISION OF CHANGE (CLEAR VISION OF FUTURE)
• EXTRAORDINARY ACHIEVEMENTS/HEROISM IN PAST
• SPEAK WITH AUTHORITY
• PERSONAL SACRIFICE FOR THE ORGANIZATION
• MUST HAVE CONDUCIVENESS - A NEED FOR CHANGE
• TRANSFORMS FOLLOWERS VALUES
• INSTILL CONFIDENCE IN SUBORDINATES/FOLLOWERS
• FOLLOWERS AFFECTION FOR LEADER
• EMOTIONAL INVOLVEMENT OF FOLLOWERS IN GOALS OR
  MISSION OF ORGANIZATION
• IF GREATER DISCREPANCY BETWEEN STATUS QUO AND
  FUTURE GOAL OR VISION - MORE CHARISMA
• GOAL OR VISION MUST BETTER THEIR LIVES IN SOME
  WAY IT MUST BE FOR THEM
• PROVES NOT PERSONAL INTEREST BY INCURRING GREAT
  PERSONAL RISK OR COST
• DEMONSTRATE CONCERN FOR FOLLOWERS NEEDS RATHER
  THAN OWN. TOTAL COMMITMENT TO THE MISSION
  WITH NO SELF GAIN. THE GREATER THE COST, RISK OR
  SACRIFICE - THE GREATER THE TRUST OF FOLLOWERS.

84
TRANSFORMATIONAL/CHARISMATIC LEADERSHIP (CONTINUED
)

• ACTS OF HEROISM AND SELF-SACRIFICING BEHAVIORS
  MUST BE NOVEL, UNCONVENTIONAL AND OUT OF
  THE ORDINARY. THIS EVOKES RESPECT AND
  ADMIRATION IN FOLLOWERS. THIS LEADS TO THE
  BELIEF THAT THE LEADER HAS ALMOST SUPERHUMAN
  QUALITIES.
• REALISTIC ASSESSMENT OF ENVIRONMENTAL RESOURCES
  AND CONSTRAINTS AFFECTING THE REALIZATION
  OF THE VISION
• EXPRESSION OF HIGH ENERGY AND PERSISTENCE,
  UNCONVENTIONAL AND RISKY BEHAVIOR, HEROIC
  DEEDS AND PERSONAL SACRIFICES BECOME CONTAGIOUS
  TO FOLLOWERS
• VISION INCLUDES MEETING NEEDS OR LATENT DESIRES
  OF FOLLOWERS
• PORTRAYS STATUS QUO AS INTOLERABLE AND FUTURE
  VISION AS OBTAINABLE
• LEADERSHIP BY EXAMPLE
• ASSUMES ROLE OF REFORMER
• DISTRESSFUL CONDITIONS AMONG FOLLOWERS CREATES
  HIGH CONDUCIVENESS.
• ARTICULATE HOW THE FUTURE VISION, IF REALIZED,
  WILL REMOVE DISCONTENT AND FULFILL ASPIRATIONS
  OF FOLLOWERS
• PAINTS CLEAR PICTURES OF FUTURE VISION AND
  SPECIFIES PRECISELY HOW IT WILL BE REACHED
  (I.E., DOESNT GIVE VISION WITHOUT WHAT ACTIONS
  FOLLOWERS MUST TAKE)
• STRATEGY
• PICTURE STATUS QUO
• PICTURE FUTURE VISION
• HOW FUTURE VISION FULFILLS THEIR ASPIRATIONS
• PLANS/SPECIFIC ACTIONS FOR REALIZING VISION

85
CONTROL DIAGRAM
SET STDS OR OBJECTIVES
DEFINE SUBSYSTEM
IDENTIFY CHARACTERISTICS TO BE MEASURED
COLLECT INFO ON PRE- DETERMINED CYCLE
IF NO DEVIATION
MAKE COMPARISONS BETWEEN OBJECTIVES AND RESULTS
IF DEVIATION
DIAGNOSE DEFICIENCIES CORRECTIVE ACTION

86
USES OF PERFORMANCE EVALUATIONS

• COMPENSATION
• PERFORMANCE IMPROVEMENT FEEDBACK
• DOCUMENTATION
• PROMOTION DECISIONS
• TRAINING NEEDS ASSESSMENT
• TRANSFER DECISIONS

87
CRITERIA FOR EFFECTIVE PERFORMANCE MEASURES

• FIT WITH STRATEGY
• VALIDITY
• RELIABILITY
• ACCEPTABILITY
• SPECIFIC FEEDBACK

88
METHODS OF PERFORMANCE EVALUATION

• RANKING (Forced Distribution or Paired
  Comparison)
• GRAPHIC RATING SCALES
• CRITICAL INCIDENT METHOD ESSAY
• BEHAVIORALLY ANCHORED RATING SCALES
• BEHAVIOR OBSERVATION SCALES
• MANAGEMENT BY OBJECTIVES

89
Management by Objectives

• Process
• Managers provide subs with framework
• Subs propose objectives
• Joint goal setting
• Determine measures
• Conduct periodic reviews
• Annual performance appraisal

90
Advantages of MBO

• Clarify employee job requirements
• Directs work activities toward org. goals
• Improves manager-subordinate communication
• Facilitates objective evaluation of performance
• Stimulates employee motivation
• Increases subordinate commitment to goals through
  participation

91
Potential Problems with MBO

• Performance not easily measured in some jobs
• Neglect aspects of job which are not easily
  quantifiable
• Insufficient support from upper management
• Non acceptance of goal by subordinate
• Procedures can be time consuming
• Authoritarian administration with illusory
  participation
• Failure to integrate with reward system

92
LEGAL IMPLICATIONS/COURTS

• 1. DOES A JOB ANALYSIS/JOB DESCRIPTION EXIST?
• 2. IS THE SYSTEM BASED ON PERSONALITY TRAITS
  RATHER THAN JOB RELATED BEHAVIORS?
• 3. WAS THERE A FAILURE TO SHARE THE RESULTS OF
  THE PERFORMANCE EVALUATION WITH THE EMPLOYEE?
• WAS THE EMPLOYEE PROVIDED ADEQUATE COUNSELING
  TO MAKE CORRECTIONS IN PERFORMANCE OR
  BEHAVIOR?
• WAS EMPLOYEE PRIVACY PROTECTED?
• WAS THERE EVIDENCE OF DISCRIMINATION?
• ARE PERFORMANCE APPRAISALS REVIEWED BY THE
  RATERS MANAGER?
• IS THERE A SYSTEM FOR EMPLOYEES TO APPEAL?

93
ADVANTAGES OF SPECIALIZATION

• PROFICIENCY
• LESS WASTED MOTION
• TRAINING FACILITATED
• REPLACEMENT FACILITATED

94
UNINTENDED RAMIFICATIONS OF EXCESSIVE
SPECIALIZATION

• LACK OF MOTIVATION
• ALIENATION
• DECREASED QUALITY
• ABSENTEEISM
• TURNOVER
• ANTI-SOCIAL BEHAVIOR
• BOREDOM
• DECREASED JOB SATISFACTION

95
HERZBERGS RECOMMENDATIONS
1. INCREASE THE ACCOUNTABILITY OF INDIVIDUALS FOR
THEIR OWN WORK. 2. GIVE A PERSON A COMPLETE
NATURAL UNIT OF WORK. 3. ALLOW EMPLOYEES AS MUCH
CONTROL OVER WORK AS POSSIBLE. 4. GRANT THE
EMPLOYEE ADDITIONAL AUTHORITY. 5. MAKE PERIODIC
REPORTS DIRECTLY TO THE EMPLOYEE RATHER THAN TO
THE SUPERVISOR. 6. INTRODUCE NEW AND MORE
DIFFICULT TASKS. 7. CREATE OPPORTUNITIES FOR
EMPLOYEES TO BECOME EXPERTS IN THEIR
SPECIALIZED AREAS.
96
JOB DESIGN
CORE JOB DIMENSIONS
CRITICAL PSYCH. STATES
PERSONAL WORK OUTCOMES
SKILL VARIETY
EXPERIENCED MEANINGFULNESS OF THE WORK
HIGH WORK MOTIVATION
TASK IDENTITY
TASK SIGNIFICANCE
HIGH QUALITY PERFORMANCE
EXPERIENCED RESPONSIBILITY/ ACCOUNTABILITY
HIGH JOB SATISFACTION
AUTONOMY
KNOWLEDGE OF RESULTS OF WORK ACTIVITIES
FEEDBACK
LOW ABSENTEEISM
TURNOVER
GROWTH NEED STRENGTH
97
POTENTIAL PROBLEMS IMPLEMENTATION CONSTRAINTS

• COST - IF RETOOLING NECESSARY
• INDIVIDUAL DIFFERENCES - WEAKER HIGHER ORDER
  NEEDS
• SOME EMPLOYEES FULFILL HIGHER ORDER NEEDS OUTSIDE
• TECHNOLOGY LIMITS ITS APPLICABILITY
• PAY NOT COMMENSURATE WITH NEW RESPONSIBILITIES
• INITIAL DIP IN PRODUCTIVITY
• DISTRUST ON THE PART OF EMPLOYEES

98
CONFLICT - POTENTIAL DYSFUNCTIONS

• EFFORTS DIVERTED FROM GOAL ATTAINMENT
• INCREASED TENSION HARD FEELINGS
• DEVELOPMENT OF STEREOTYPES - CONTINUATION
• BREAKDOWN IN UNDERSTANDING
• DECREASED COOPERATION

99
CONFLICT - POTENTIAL FUNCTIONS

• STIMULATES POSITIVE CHANGE
• SUPERIOR GROUP DECISION MAKING
• IF IT TAKES THE FORM OF COMPETITION - INCREASED
  MOTIVATION
• CALLS ATTENTION TO PROBLEMS THAT MAY EXIST

100
CONFLICT INTENSITY
ANNIHILATORY CONFLICT
OVERT EFFORTS TO DESTROY OTHER PARTY AGGRESSIVE
PSYCHOLOGICAL OR PHYSICAL ATTACKS THREATS AND
ULTIMATUMS ASSERTIVE VERBAL ATTACKS OVERT
QUESTIONING OR CHALLENGING OF OTHERS MINOR
DISAGREEMENTS OR MISUNDERSTANDINGS
NO CONFLICT
101
CONFLICT RESOLUTION STYLES
ASSERTIVE
COLLABORATING
FORCING
COMPROMISING
AVOIDING
ACCOMMODATING
UNASSERTIVE
COOPERATIVE
UNCOOPERATIVE
102
STRATEGIES FOR CONFLICT RESOLUTION

• SUPERORDINATE GOALS
• FEAR OF EXTERNAL THREAT
• APPEAL TO HIERARCHY
• TRANSFER PERSONNEL
• DECOUPLING WITH A BUFFER
• BUFFERING WITH A LIAISON
• DECOUPLING BY DUPLICATING RESOURCES
• UNIFYING DEPARTMENTS
• NEGOTIATING
• CONFRONTATION MEETING
• TRAINING IN CONFLICT RESOLUTION

103
POLITICAL TACTICS

• EMPIRE BUILDING
• GARNERING OTHERS IDEAS
• SABOTAGE
• REORGANIZATION
• BUILDING NETWORKS/COALITIONS
• EMPLOYING EXPERT POWER
• SCAPEGOATING
• DIVERTING ATTENTION
• STALLING
• SPREADING THE RISK
• SILENCE
• INGRATIATION
• PLAYING THE MOUSE
• COOPTATION

104
NEGOTIATION
BARGAINING BASE
ASPIRATION BASE
SELLER
BUYER
CONTRACT
ASPIRATION BASE
BARGAINING BASE
105
BLUFF TACTICS

• COMMITMENT TO A DEADLINE
• COMMITMENT TO A THIRD PARTY
• COMMITMENT TO A PRINCIPLE OR POLICY
• COMMITMENT TO A PRECEDENT
• STALLING
• SUGGESTING AN ALTERNATAIVE SOURCE
• THE THREAT
• THE PROMISE

106
PROTECTING AGAINST DECEPTION IN NEGOTIATION

• Research the organizations past record
• Set ground rules for bargaining (e.g., full
  disclosure)
• Look for signs of deception
• Ask questions in different ways
• Ask the other party to come clean
• Ask questions to which you already know the
  answer
• Take notes during the negotiation
• Include written claims as part of the formal
  agreement
• Use contingent agreements for protection
• Trust but verify

107
FACTORS INFLUENCING LEVEL OF STRESS

• LOW SELF-ESTEEM
• ADAPTABILITY
• TYPE A AND TYPE B PERSONALITY
• ROLE CONFLICT
• INTERSENDER
• INTRASENDER
• PERSON ROLE
• ROLE OVERLOAD

• ROLE AMBIGUITY
• STRESSFUL EVENTS

108
SOURCES OF RESISTANCE TO CHANGE

• FEAR OF THE UNKNOWN
• VESTED INTERESTS
• MISUNDERSTANDING
• DIFFERING ASSESSMENTS
• LIMITED RESOURCES
• INTERORGANIZATIONAL AGREEMENTS

REDUCING OF RESISTANCE TO CHANGE

• EDUCATION
• PARTICIPATION
• NEGOTIATION
• MANIPULATION

109
ORGANIZATIONAL DEVELOPMENT METHODS

• SURVEY FEEDBACK
• SENSITIVITY TRAINING
• TEAM BUILDING
• MBO
• FLEXTIME
• TELECOMMUTING
• JOB ENRICHMENT
• AUTONOMOUS WORK GROUPS
• QUALITY CIRCLES
• BENCHMARKING BEST PRACTICES
• TQM

110
IMPLEMENTING TQM AT MOTOROLA

• SIX SIGMA QUALITY
• TOP-DOWN MANAGEMENT SUPPORT
• MANAGEMENT AND IMPROVEMENT BY MEASUREMENT
• CUSTOMER FOCUS
• BENCHMARKING
• CONTINUOUS IMPROVEMENT
• TRAINING
• SENSE OF URGENCY
• REWARD AND RECOGNITION

111
LEARNING FROM THE JAPANESE

• PARTICIPATIVE MANAGEMENT
• WORK ETHIC
• DECISION MAKING BY CONSENSUS
• JOB ENRICHMENT
• INFORMAL IMPLICIT CONTROL
• LIFETIME EMPLOYMENT SYSTEM
• LAYOFFS ARE MINIMIZED
• CONCERN FOR EMPLOYEES
• ESPRIT DE CORPS
• PARTNERSHIP BUSINESS, LABOR GOVT
• EMPHASIS ON LONG RANGE PLANNING
• COLLECTIVE RESPONSIBILITY
• MINIMIZATION OF INVENTORY
• CONTINUOUS IMPROVEMENT